Consultants: Long Beach could save as much as $28.8M through reforms

STUDY: Changes to overtime and extra pay for special skills seen saving the most.

Eric Bradley Staff Writer

LONG BEACH - A series of government reforms could save Long Beach as much as $28.8 million annually, consultants told the City Council on Tuesday.

Most of those savings, about $16 million, would come from changing overtime calculations and re-evaluating premium pay for specialized skills and education incentives, according to the report delivered by the firm Management Partners.

Other potential yearly savings identified by the study include up to $8.7 million if some city services were opened to private sector competition, up to $3.5 million if fire and emergency medical service delivery were realigned and about $600,000 if some departments were combined.

Long Beach has overtime rules that are more generous than those required by the federal Fair Labor Standards Act, with employees able to count paid time off used in a work week toward triggering overtime.

Changing overtime calculations to the federal standard would save an estimated $7.8million, according to consultant Cathy Standiford.

"The issue is whether, particularly in these financially challenging times, the city can pay overtime at a level that exceeds what the federal government requires you to do," Standiford said.

Premium pay - additional salary given for earning advanced education and learning specialized skills - has increased from $8.2 million annually in 2003 to $18.7 million last year, the study found.

Some premium pay awarded for some skills, such as shorthand, may be outdated, Standiford said.

"I don't know how many people continue to do dictation as a skill," she said.

Most changes to pay and overtime would have to be negotiated with the city's labor unions.

City leaders commissioned the government reform report as officials grapple with a three-year budget deficit that is estimated at $33.8 million.

Long Beach has made deep cuts to spending since 2004. The general fund budget has been reduced by $208.7 million, 857 full-time equivalent positions have been eliminated and management has been shrunk by 28 percent.

Tuesday's report comes two weeks after a preliminary study found that the total staffing level in Long Beach is 11.14 positions per 1,000 population, the highest level when compared with seven other large California cities.

Oakland was second, with 9.5 positions per 1,000 residents.

The other cities analyzed were Anaheim, Bakersfield, Fresno, Sacramento, San Diego and Santa Ana.

While council members generally spoke favorably about the ideas presented Tuesday, Councilwoman Rae Gabelich questioned comparing staffing in Long Beach to other cities that have different demographics and challenges.

"I think if you have less, you do less," Gabelich said of a potential reduced city workforce. "I don't want to wake up and see that ... we've reduced services on the backs of the community."

Consultant Jerry Newfarmer said that the data, while imperfect, has value.

As an example, Newfarmer said that Long Beach is the only city in California that requires an elected city prosecutor in addition to a city attorney.

"The fact that other people don't have it gives rise to your numbers," he said.

City Manager Pat West said staff members, now working on next year's fiscal budget, will analyze the consultant's recommendations and report to the council in 60 to 90 days.